AT&T Inc., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Net income attributable to AT&T	13,903	19,370	29,450	12,976	13,345
Net income attributable to noncontrolling interest	1,072	583	397	357	342
Net noncash charges	45,619	34,017	11,936	28,123	26,451
Changes in operating assets and liabilities	(11,926)	(10,368)	(2,632)	(2,112)	(4,258)
Net cash provided by operating activities	48,668	43,602	39,151	39,344	35,880
Capital expenditures	(19,635)	(21,251)	(21,550)	(22,408)	(20,015)
Net change in short-term borrowings with original maturities of three months or less	(276)	(821)	(2)	—	(1)
Issuance of other short-term borrowings	4,012	4,898	—	—	—
Repayment of other short-term borrowings	(6,904)	(2,098)	—	—	—
Issuance of long-term debt	17,039	41,875	48,793	10,140	33,969
Repayment of long-term debt	(27,592)	(52,643)	(12,339)	(10,823)	(10,042)
Free cash flow to equity (FCFE)	15,312	13,562	54,053	16,253	39,791

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to AT&T Inc.’s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	AT&T Inc.’s FCFE decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

AT&T Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	7,126,000,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	15,312
FCFE per share	2.15
Current share price (P)	28.99
Valuation Ratio
P/FCFE	13.49
Benchmarks
P/FCFE, Competitors¹
Verizon Communications Inc.	21.41
P/FCFE, Sector
Fixed Line Telecommunications	16.92
P/FCFE, Industry
Telecommunications	25.41

Based on: 10-K (filing date: 2020-02-20).

¹ Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

AT&T Inc., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
No. shares of common stock outstanding¹	7,172,884,070	7,284,589,883	6,141,532,706	6,141,570,142	6,151,208,898
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	15,312	13,562	54,053	16,253	39,791
FCFE per share³	2.13	1.86	8.80	2.65	6.47
Share price^1, 4	38.61	30.85	36.77	41.48	36.99
Valuation Ratio
P/FCFE⁵	18.09	16.57	4.18	15.67	5.72
Benchmarks
P/FCFE, Competitors⁶
Verizon Communications Inc.	20.61	18.28	12.93	51.50	24.15
P/FCFE, Sector
Fixed Line Telecommunications	19.18	17.39	6.10	22.63	8.98
P/FCFE, Industry
Telecommunications	24.27	23.01	7.21	27.79	9.20

Based on: 10-K (filing date: 2020-02-20), 10-K (filing date: 2019-02-20), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-17), 10-K (filing date: 2016-02-18).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 15,312,000,000 ÷ 7,172,884,070 = 2.13

⁴ Closing price as at the filing date of AT&T Inc.’s Annual Report.

⁵ 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 38.61 ÷ 2.13 = 18.09

⁶ Click competitor name to see calculations.

Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	AT&T Inc.’s P/FCFE ratio increased from 2017 to 2018 and from 2018 to 2019.

AT&T Inc. (NYSE:T)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical